2004 (12) TMI 311 - AT - Income Tax

Summary

Issues Involved:
Penalty under s. 272A(2)(f) for delay in filing declarations in Form No. 15H received by the assessee for non-deduction of tax.

Detailed Analysis:

Issue 1: Penalty under s. 272A(2)(f)
The appeal concerned the penalty imposed under s. 272A(2)(f) for the delay in filing declarations in Form No. 15H received by the assessee for non-deduction of tax. The responsible person, a bank manager, did not deduct tax as declarations in Form No. 15H were received from individuals to whom interest was paid exceeding Rs. 10,000. The declarations were to be filed with the CIT office by a specific deadline, but were submitted late. The CIT issued a show-cause notice, and the bank manager explained the delay was due to ignorance of the procedure, requesting leniency. The CIT imposed a penalty, citing ignorance of law as inexcusable. However, the appellant argued that penalty should not apply as reasonable cause for the delay was established.

Issue 2: Reasonable Cause for Delay
The appellant relied on a Tribunal decision and argued that ignorance of law should be considered a reasonable cause for the delay in filing the declarations. The Tribunal noted that while s. 272A(2)(f) allows for penalties in case of default, s. 273B provides an exception if a reasonable cause is established. Citing Supreme Court precedents, the Tribunal emphasized that not every person is presumed to know the law and that penalties should not be imposed unless there is conscious disregard for statutory provisions. Considering the appellant's explanation, the Tribunal found the delay in filing the declarations was not intentional and that the penalty was unwarranted. Therefore, the penalty under s. 272A(2)(f) was deleted, and the appeal of the assessee was allowed.

This detailed analysis covers the issues involved in the legal judgment, providing a comprehensive overview of the case and the Tribunal's decision regarding the penalty for the delay in filing declarations in Form No. 15H.